CCL Industries Announces 2025 Third Quarter Results

Third Quarter Highlights

• Per Class B share⁽³⁾: $1.21 adjusted basic earnings up 11.0%; $1.21 basic earnings up 12.0%

• Sales increased 6.3% on 3.7% organic growth, 0.1% acquisition growth and 2.5% positive currency translation

• Operating income⁽¹⁾ improved 11.4%, with a 16.4% operating margin⁽¹⁾ up 80 bps

• Returned $155.8 million to shareholders: $55.8 million in dividends and repurchased 1.3 million Class B shares for $100.0 million

Nine-Month Highlights

• Per Class B share⁽³⁾: $3.61 adjusted basic earnings up 9.4%; $3.60 basic earnings down 3.2%; 2024 included $0.44 revaluation gain in basic earnings

• Sales increased 6.5% on 3.1% organic growth, 0.8% acquisition growth and 2.6% positive currency translation

• Operating income⁽¹⁾ improved 9.9%, with a 16.6% operating margin⁽¹⁾ up 50 bps

• Returned $467.9 million to shareholders: $167.9 million in dividends and repurchased 3.9 million Class B shares for $300.0 million

TORONTO, ONTARIO / ACCESS Newswire / November 11, 2025 / CCL Industries Inc. (TSX:CCL.A)(TSX:CCL.B) ("the Company"), a world leader in specialty label, security and packaging solutions for global corporations, government institutions, small businesses and consumers, today reported 2025 third quarter results.

Sales for the third quarter of 2025 increased 6.3% to $1,965.9 million, compared to $1,849.7 million for the third quarter of 2024, with organic growth of 3.7%, acquisition-related growth of 0.1% and a 2.5% positive impact from foreign currency translation.

Operating income⁽¹⁾ for the third quarter of 2025 improved 11.4% to $321.8 million compared to $288.9 million for the comparable quarter of 2024. Foreign currency translation had a 2.2% positive impact on operating income for the comparable quarters.

The Company recorded an expense for restructuring and other items of $1.6 million, primarily attributable to severance cost at CCL Design and Checkpoint, compared to $2.2 million principally related to transaction costs for the acquisition of Pacman in the 2024 second quarter.

Tax expense for the third quarter of 2025 was $71.6 million compared to $61.4 million in the prior year period. The effective tax rate for the 2025 third quarter was 25.5% compared to 24.5% for the 2024 third quarter due to a higher portion of the Company's taxable income earned in higher tax jurisdictions.

Net earnings were $210.8 million for the 2025 third quarter compared to $191.7 million for the 2024 third quarter. Basic and adjusted basic earnings per Class B share⁽³⁾ for the 2025 third quarter were $1.21, compared to basic and adjusted basic earnings per Class B share⁽³⁾ of $1.08 and $1.09, respectively, in the prior year third quarter. Foreign currency translation had a positive impact of $0.02 on adjusted basic earnings per Class B share⁽³⁾.

For the nine-month period ended September 30, 2025, sales and operating income⁽¹⁾ improved 6.5% and 9.9% to $5.8 billion and $960.8 million, respectively, compared to the same nine-month period in 2024. Net earnings for the 2025 nine-month period were $631.3 million compared to $663.3 million for the 2024 nine-month period. For the nine-month period ended September 30, 2025, organic sales growth was 3.1%, acquisition related growth of 0.8% and foreign currency translation had a positive 2.6% impact. Net earnings for the 2024 nine-month period included a $78.1 million non-cash revaluation gain in conjunction with the acquisition of the final 50% interest of Pacman-CCL in June 2024. Finally, for the nine-month period ended September 30, 2025, basic and adjusted basic earnings per Class B share⁽³⁾ were $3.60 and $3.61, respectively, compared to basic and adjusted basic earnings per Class B share⁽³⁾ of $3.72 and $3.30, respectively, in the prior year nine-month period. Foreign currency translation had a positive impact of $0.06 on adjusted basic earnings per Class B share⁽³⁾.

Geoffrey T. Martin, President and Chief Executive Officer, commented, "Given the challenging geopolitical back drop and highly disrupted trade environment, I'm very pleased with our results for the third quarter of 2025. 3.7% organic sales growth and tight operational controls drove an 11.4% increase in Company operating income⁽¹⁾ on robust performance from our CCL Segment and continued improvement at Checkpoint. As expected, Avery and Innovia were impacted by tariff costs in the United States and start-up costs for the large new plant in Germany respectively. All-in, the Company posted $1.21 adjusted basic earnings per Class B share⁽³⁾ for the quarter compared to $1.09 in the prior year period."

Mr. Martin stated, "The CCL Segment delivered strong 6.6% organic sales growth with substantial profitability gains. Home & Personal Care results increased on very strong sales growth for aluminum aerosols and bottles plus label sales strength in the Middle East and recovery in Asia, with improved profitability in all regions except Latin America on currency challenges. Healthcare results improved in most geographies, although notably excluding Canada where customers reduced exports to the United States; AgChem results were strong in the United States but soft in Europe. Modest Food & Beverage profitability gains were currency translation driven with underlying performance flat on slow end markets and new plant start-up costs. Solid demand and new business wins in electronics markets, particularly across Asia, alongside improved profitability in automotive despite slowing demand, drove significant gains for CCL Design. CCL Secure results also improved significantly, although compared to a weak prior year, on volume gains in polymer banknotes and passport components."

Mr. Martin continued, "Avery's results were modestly behind the 2024 third quarter as unplanned tariff costs and lower shipments of organization products for the back-to-school season impacted profitability. The direct-to-consumer channel continued to post sales and profitability gains in both North America and Europe. Checkpoint's improved results were driven by strong gains for MAS operations in Europe and Asia, more than offsetting lower North American profitability, somewhat impacted by unrecovered tariff cost. Apparel labeling results declined modestly compared to exceptional prior year performance as the global supply industry continues to rebalance tariff-related risk. RFID volume continued to grow, increasing significantly in September. Underlying results for Innovia were solid for the quarter, excluding startup costs at the new facility in Germany that drove the entire decline in profitability, as productivity gains in the U.K. and continued volume growth for EcoFloat in Poland more than offset lower demand in North America."

Mr. Martin added, "Foreign currency translation had a $0.02 positive impact on adjusted earnings per Class B share for the third quarter of 2025. At today's Canadian dollar exchange rates, currency translation impact would be a modest tailwind to earnings, if sustained, for the fourth quarter of 2025."

Mr. Martin concluded, "The Company delivered particularly strong free cash flow this quarter, finishing the period with a consolidated leverage ratio⁽⁵⁾ of just 0.93 times Adjusted EBITDA⁽²⁾, despite returning $467.9 million to shareholders in dividends and share repurchases under its Normal Course Issuer Bid in the first nine months of 2025. With $1,136.9 million cash-on-hand and US$0.8 billion undrawn capacity on our syndicated revolving credit facility, we are well placed to fund global expansion initiatives. The Board of Directors declared the quarterly dividend at $0.32 per Class B non-voting share and $0.3175 per Class A voting share, payable to shareholders of record at the close of business on December 16, 2025, to be paid on December 30, 2025."

2025 Third Quarter Highlights

CCL

• Sales increased 9.4% to $1,260.6 million on 6.6% organic growth and 2.8% positive impact from foreign currency translation

• Regional organic sales growth: mid-single digit in Europe and North America, high-single digit in Asia Pacific (including the Middle East) and Latin America

• Operating income⁽¹⁾ $216.3 million, up 20.7%, 17.2% operating margin⁽¹⁾ up 170 bps

• Label joint ventures added $0.01 earnings per Class B share

Avery

• Sales decreased 0.1% to $279.3 million due to 2.8% organic decline partially offset by 0.4% acquisition contribution and 2.3% positive impact from foreign currency translation

• Operating income⁽¹⁾ $53.1 million, down 3.8%,19.0% operating margin⁽¹⁾, down 70 bps

Checkpoint

• Sales increased 6.2% to $255.3 million on organic growth of 4.4% and 1.8% positive impact from foreign currency translation

• Operating income⁽¹⁾ $38.8 million, up 5.7%, 15.2% operating margin⁽¹⁾, down 10 bps

Innovia

• Sales declined 3.6% to $170.7 million due to 6.0% organic decline partly offset by 2.4% positive impact from foreign currency translation

• Operating income⁽¹⁾ $13.6 million, down 23.6%, 8.0% operating margin⁽¹⁾, down 210 bps

The Company will hold a live webcast call at 7:30 a.m. ET on November 12, 2025, to discuss these results.

The quarterly results review presentation, including outlook commentary, is posted on the Company's website at https://www.cclind.com/investors/investor-presentations/

To access the webcast or webcast replay, please use the following webcast link:

https://www.webcaster5.com/Webcast/Page/2807/53088

To access the audio/listen only live webcast, please use the following numbers:

Toll Free: 1-877-545-0320
International: 1-973-528-0002
Conference Entry Code (CEC): 915492

Replay for the webcast will be available Wednesday, November 12, 2025, until Sunday, December 14, 2025.

For more information on CCL, visit our website - www.cclind.com or contact:

Forward-looking Statements

This press release contains forward-looking information and forward-looking statements, as defined under applicable securities laws, (hereinafter collectively referred to as "forward-looking statements") that involve a number of risks and uncertainties. Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions. Forward-looking statements are typically identified by the words "believes," "expects," "anticipates," "estimates," "intends," "plans" or similar expressions. Statements regarding the operations, business, financial condition, priorities, ongoing objectives, strategies and outlook of the Company, other than statements of historical fact, are forward-looking statements. Specifically, this press release contains forward-looking statements regarding the impact of foreign currency exchange rates on the 2025 fourth quarter; the adequacy of the Company's financial liquidity including the availability of sufficient cash from operations and available credit capacity to fund the Company's future financial obligations for the next few years; and the Company's expectations regarding general business and economic conditions.

Forward-looking statements are not guarantees of future performance. They involve known and unknown risks and uncertainties relating to future events and conditions including, but not limited to, the impact of competition; consumer confidence and spending preferences; general economic and geopolitical conditions; currency exchange rates; interest rates and credit availability; technological changes; changes in government regulations; risks associated with operating and product hazards; and the Company's ability to attract and retain qualified employees. Do not unduly rely on forward-looking statements as the Company's actual results could differ materially from those anticipated in these forward-looking statements. Forward-looking statements are also based on a number of assumptions, which may prove to be incorrect, including, but not limited to, assumptions about the following: consumer spending; customer demand for the Company's products; market growth in specific sectors and entrance into new markets; the Company's ability to provide a wide range of products to multinational customers on a global basis; the benefits of the Company's focused strategies and operational approach; the achievement of the Company's plans for improved efficiency and lower costs, including stable aluminum and resin costs; the availability of cash and credit; fluctuations of currency exchange rates; the Company's continued relations with its customers; and economic conditions. Should one or more risks materializeor should any assumptions prove incorrect, then actual results could vary materially from those expressed or implied in the forward-looking statements. Further details on key risks can be found in the 2024 Annual Report, Management's Discussion and Analysis, particularly under Section 4: "Risks and Uncertainties." CCL Industries Inc.'s annual and quarterly reports can be found online at www.cclind.com and www.sedarplus.ca or are available upon request.

Except as otherwise indicated, forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on the Company's business. Such statements do not, unless otherwise specified by the Company, reflect the impact of dispositions, sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made. The financial impact of these transactions and non-recurring and other special items can be complex and depend on the facts particular to each of them and therefore cannot be described in a meaningful way in advance of knowing specific facts. The forward-looking statements are provided as of the date of this press release and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances, except as required by law.

The financial information presented herein has been prepared on the basis of IFRS for financial statements and is expressed in Canadian dollars unless otherwise stated.

Financial Information

CCL Industries Inc.
Consolidated condensed interim statements of financial position
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CCL Industries Inc.
Consolidated condensed interim income statements
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CCL Industries Inc.
Consolidated condensed interim statements of cash flows
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CCL Industries Inc.
Segment Information
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In millions of Canadian dollars

Non-IFRS Measures

⁽¹⁾ Operating income and operating income margin are key non-IFRS financial measures used to assist in understanding the profitability of the Company's business units. Operating income is defined as earnings before corporate expenses, net finance cost, goodwill impairment loss, earnings in equity accounted investments, restructuring and other items, revaluation gain and taxes. Operating income margin, also known as return on sales, is defined as operating income over sales.

⁽²⁾ Adjusted EBITDA is a critical non-IFRS financial measure used extensively in the packaging industry and other industries to assist in understanding and measuring operating results. Adjusted EBITDA is also considered as a proxy for cash flow and a facilitator for business valuations. This non-IFRS financial measure is defined as earnings before net finance cost, taxes, depreciation and amortization, goodwill impairment loss, non-cash acquisition accounting adjustments to inventory, earnings in equity accounted investments, revaluation gain and restructuring and other items. Calculations are provided below to reconcile operating income to Adjusted EBITDA. The Company believes that this is an important measure as it allows management to assess the ongoing business without the impact of net finance cost, depreciation and amortization and income tax expenses, as well as non-operating factors and one-time items. As a proxy for cash flow, it is intended to indicate the Company's ability to incur or service debt and to invest in property, plant and equipment, and it allows management to compare the business to those of the Company's peers and competitors who may have different capital or organizational structures. Adjusted EBITDA is tracked by financial analysts and investors to evaluate financial performance and is a key metric in business valuations. It is considered an important measure by lenders to the Company and is included in the financial covenants included in the senior notes and bank lines of credit.

Reconciliation of operating income to Adjusted EBITDA
Unaudited
In millions of Canadian dollars

⁽³⁾ Adjusted basic earnings per Class B share is an important non-IFRS measure to assist in understanding the ongoing earnings performance of the Company excluding items of a one-time or non-recurring nature. It is not considered a substitute for basic net earnings per Class B share but it does provide additional insight into the ongoing financial results of the Company. This non-IFRS financial measure is defined as basic net earnings per Class B share excluding gains on business dispositions, goodwill impairment loss, non-cash acquisition accounting adjustments to inventory, restructuring and other items, revaluation gain and tax adjustments.

Reconciliation of Basic Earnings per Class B Share to Adjusted Basic Earnings per Class B Share
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⁽⁴⁾ Free Cash Flow From Operations - a measure indicating the relative amount of cash generated by the Company during the year and available to fund dividends, debt repayments, repurchase of shares and acquisitions. It is calculated as cash flow from operations less capital expenditures, net of proceeds from the sale of property, plant and equipment.

The following table reconciles the measure of free cash flow from operations to IFRS measures reported in the consolidated condensed interim statements of cash flows for the periods ended as indicated.

⁽⁵⁾ Leverage ratio is a measure that indicates the Company's ability to service its existing debt. Leverage ratio is calculated as net debt divided by Adjusted EBITDA.

Supplemental Financial Information

Sales Change Analysis (%)

Business Description

CCL Industries Inc. employs approximately 26,300 people operating 213 production facilities in 42 countries with corporate offices in Toronto, Canada, and Framingham, Massachusetts. CCL is the world's largest converter of pressure sensitive and specialty extruded film materials for a wide range of decorative, instructional, functional and security applications for government institutions and large global customers in the consumer packaging, healthcare & chemicals, consumer electronic device and automotive markets. Extruded & laminated plastic tubes, aluminum aerosols & specialty bottles, folded instructional leaflets, precision decorated & die cut components, electronic displays, polymer banknote substrate and other complementary products and services are sold in parallel to specific end-use markets. Avery is the world's largest supplier of labels, specialty converted media and software solutions for short-run digital printing applications for businesses and consumers available alongside complementary products sold through distributors, mass market stores and e-commerce retailers. Checkpoint is a leading developer of RF and RFID based technology systems for loss prevention and inventory management applications, including labeling and tagging solutions, for the retail and apparel industries worldwide. Innovia is a leading global producer of specialty, high performance, multi-layer, surface engineered films for label, packaging and security applications. The Company is partly backward integrated into materials science with capabilities in polymer extrusion, adhesive development, coating & lamination, surface engineering and metallurgy; deployed as needed across the four business segments.

SOURCE: CCL Industries Inc.